Globalization and Environment: Can Pollution Haven Hypothesis alone explain the impact of Globalization on Environment?

MPRA Paper from University Library of Munich, Germany

Abstract: The economic literature on trade and environment seeks empirically test hypotheses about how trade affects the environment that is crucial for resolving current policy debates. Applying panel data technique we examine the impacts of globalization on pollution level, pollution intensity and relative change of pollution for the developed (OECD) and developing (Non-OECD) country groups and the world as a whole. This paper examines the factor endowment and pollution haven hypotheses that predict how trade affects the environment. Interaction effects also play a crucial role to determine the impact of globalization on environment. In this study we use CO2 emission and observe that the impact of globalization on environment heavily depends on the basic characteristics of a country and its dominating comparative advantage. The empirical results suggest that globalization increases CO2 emission, which is the main culprit of the global warming.

Keywords: Globalization; pollution haven hypothesis; factor endowment hypothesis; and interaction effect (search for similar items in EconPapers)
JEL-codes: F12 F14 F18 F21 F63 F64 Q0 Q3 Q34 Q5 Q53 Q54 Q56 (search for similar items in EconPapers)
Date: 2006-08-15, Revised 2006-10-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Globalization and Environment: Can Pollution Haven Hypothesis alone explain the impact of Globalization on Environment? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50590

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